Helsinki’s public housing company Heka begins restructuring talks, no staff cuts planned

The state-owned housing provider Heka has launched internal restructuring negotiations, aiming to improve service efficiency and property utilisation without reducing its workforce, the company announced on Monday.

According to a statement, the talks will reorganise operations to align with Heka’s updated strategy, focusing on streamlining collaboration between professional groups, enhancing property-specific expertise, and optimising business management. The new structure is set to take effect in early June.

Heka, which manages over 55,000 rental homes housing nearly 100,000 residents, operates on a cost-recovery basis—meaning rents cover expenses without profit motives. In 2024, its average rents were nearly 40 percent lower than those of privately financed rental housing.

The company faced criticism in 2023 after proposing an average 12 percent rent increase, citing rising loan costs. Following municipal intervention, the hike was reduced to around 8 percent, accompanied by staff reductions and cost cuts. This year, rents rose by just under 2 percent on average.

Heka’s strategy emphasises providing affordable, high-quality, and secure housing, though its financial model ties rents directly to operational expenses.